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Defaulting on a telephone company contract?
My sister runs a small company which she recently defaulted on a contract with a telephone co. She had a 3 or 4 year contract and when there is about one year remaining on her existing contract, she cancelled her service and went with another telephone co. provider for a much less monthly bill. She did not sign personal, and signed as a corporate officer with the co. of which she had defulted on. Her small business is still operating, and the previous co. obiously is trying to collect on her. Qestion (1) Is she personally liable in any way, when shed signed as an corporate officer? She said she is a Sub-s corp. Q(2): The collection co. left her a message stating that they are going to prusuit due to she is violating federal law, due to public utility issue. Her co. is debt free, and will never obtain any outside credit, my thinking is should she even bother with finding a lawyer since she signed corporately, and it's a small co. with no assets? What other advise can anyone offer?
1 Answer
- Anonymous1 decade agoFavorite Answer
Believe me, they will not stop trying to get the money from her. Does broke a contract - she has to pay. Being a S-Corp, it is possible that could affect her credit rating. Either way, she could see herself in court either as a corporation or an individual and either way - she does owe the money. YES she should worry about it